As the global economy steps ever closer to the brink of collapse a Danish Bank has just launched the first-ever negative interest rate mortgage. So for the first time, the bank will pay you for keeping a mortgage with them.
Denmarks third-largest bank Jyske Bank is handing out loans to homeowners with a -0.5% interest rate – if we were looking for a sign that the global financial system was in troubled waters, this is it!
The Guardian reports:
Under its negative mortgage, Jyske said borrowers will make a monthly repayment as usual – but the amount still outstanding will be reduced each month by more than the borrower has paid.
“We don’t give you money directly in your hand, but every month your debt is reduced by more than the amount you pay,” said Jyske’s housing economist, Mikkel Høegh.
The flip side to negative interest rates is however that savers will find they are now paying the banks to hold their funds.
Are we on the road to a catastrophic global financial crisis? Well, many would say yes, as the ongoing trade wars continue between the US and China, Iran and Russia the economy is becoming erratic, consumers are beginning to step back and hold onto their funds, businesses are beginning to pull back on spending and safe havens are on the rise.
Whether its 3 months, 12 months or a couple of years down the road, it sure does look inevitable that a major correction in the Worlds economy is on the cards.